Chapter TCM0307100
| Published date | 09 April 2016 |
| Record Number | TCM0307100 |
| Court | HM Revenue & Customs |
You do not need to follow this guidance if
- the customer is not a European Union (EU) national, A2 national or a Croatian national.
Before you follow this guidance, make sure
- you know the nationality of the customer and whether they are employed or self-employed
- you follow the guidance in TCM0307300
- you will the correct user roles to follow this guidance.
- you are in the correct MU. Use TCM0322460 for the correct MU number.
For new claims made on or after 1 May 2004 (and during the initial period of derogation from the Treaty of Accession - an option not to adopt all of the provisions up to 30 April 2006), entitlement to Child Tax Credit (CTC) will depend on the customer (regardless of his or her nationality) having a ‘right to reside’ in the UK (whether under UK or EC law). This is in addition to the customer having to meet the existing tests of being present and ordinarily resident in the UK.
Entitlement to WTC is dependent upon the customer being present and ordinarily resident in the UK. EU national workers who are exercising their rights under EC law to live and work in the UK are treated as being ‘ordinarily resident’ in the UK whilst they are working here. However, A2 and Croatian nationals who are required to register or authorise their employment with the Home Office Worker Registration Scheme (WRS), Worker Authorisation Scheme (WAS) or the Workers Authorisation Requirement (WAR) must register or obtain authorisation in order to be treated as being ordinarily resident in the UK for WTC purposes.
GuidanceNote: When sending customer, staff or process data to another individual or team, make sure you follow the latest data security guidelines or contact the Data Guardian or Data Security Team for advice.
Step 1Using the information provided by the customer or on the Tax Credits system, check for the period you are considering if the customer satisfies the Right to Reside test.
If you need to determine if a person has a permanent right of residence, go to Step 2.
If you need to determine if a person has gained full free movement, go to Step 6.
If you need to determine if an A2 national or a Croatian national is exempt from registration, go to Step 9.
If you need to determine if the customer is a family member of a qualified person, go to Step 10.
If you need to determine if the customer is a previously employed person with children in formal education in the UK, go to Step 16.
If you need to determine if the customer is a student, go to Step 24.
If you need to determine if the customer is a worker, go to Step 27.
If you need to determine if the customer is self-sufficient, go to Step 30.
If you need to determine if the customer is a work seeker, go to Step 35.
If you need to determine if the customer is registered on WAS or WAR, go to Step 38.
If you need to determine if the customer is self-employed, go to Step 39.
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Step 2If the customer is an EU or Swiss national who has resided in the UK and has had a right to reside here for a continuous period of five years, go to Step 4.
Note: You must consider all the possible reasons for the right to reside before deciding if the customer fits this criteria.
Note: The EU or Swiss national must have had a right to reside throughout this five year period
If the customer is a family member of an EU national or a Swiss national who has a right to reside here for a continuous period of five years and has resided in the UK with them, go to Step 4.
Note: Family member includes the customer’s spouse or civil partner, direct descendants of the customer or their spouse or civil partner and dependant direct relatives in the ascending line of the customer and his/her spouse or civil partner
If the customer is a worker or self-employed person who has ceased activity, go to Step 4.
Note: The main criteria that must be satisfied for a person to acquire a permanent right to reside as a worker who has ceased activity are as follows:
- If, on the date they ceased activity as an employed or self employed person
- they had either reached state pension age or took early retirement and
- they pursued that activity for at least 12 months prior to the date activity ceased and
- they had resided continuously in the UK for three years or more
or - they ceased activity as an employed or self employed person as a result of permanent incapacity for work and either resided in the UK continuously for two years prior to the date of termination, or the incapacity for work was as a result of an accident at work or an occupational disease that entitles them to a pension paid in full or part by a UK institution
or - the person is a worker or self employed person in an EU member state but retains a residence in the UK to which they returns as a rule at least once a week and prior to becoming active as an employed or self employed person in an EU state they resided in the UK and been active as an employed person in the UK for at least three years.
If the customer is a family member of a worker or self-employed person and the worker or self-employed person has died, go to Step 3
If any other circumstances apply, go to Step 5
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Step 3If the customer resided with the worker immediately before their death and the worker or self-employed person resided continuously in the UK for at least two years immediately before their death, go toStep 4
If the family member resided with the worker immediately before their death and the death was the result of an accident at work or an occupational disease, go to Step 4
If any other circumstances apply, go to Step 5
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Step 4The customer has a permanent right of residence
- take no further action in this guidance and return to the Rules Based Service - International right to reside test.
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Step 5The customer does not appear to have a permanent right of residence
Note: If the customer states they have a permanent right to reside, refer to your TALLO for advice.
- take no further action in this guidance and return to the Rules Based Service - International right to reside test.
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Step 6Using the information provided by the customer or the information on WAS or WAR, check if the worker has previously been in registered employment for 12 months or more.
Note: The customer can have more than one period of employment in this time. They must have registered this employment within one calendar month of starting.
Note: Periods of unemployment must not total more than 30 days in any 12-month period.
Note: If the period of Right to Reside you are considering is after 1 January 2014, A2 nationals are treated in the...
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